Hello, I already posted this post in the “help” section but no proper answers (just useless information).

I need a quick clarification: when trading with CFD the “margin call” and “position will close” are set-up at 45% and 25% of the INITIAL account value or of something else?

E.g. if my INITIAL account value is £10,000 and I bought X number of shares for a long position and the CURRENT account value is now £3,500 (then going against my long position), does it mean that I already passed the “margin call” of £4,500 (45% of the INITIAL account value) and going closer to reach the “position will close” of £2,500 (25% of the INITIAL account value)?

Then if I deposit extra £10,000, and the CURRENT account value becomes £13,500, are the “margin call” and “position will close” still at 45% (£4,500) and 25% (£2,500) of the INITIAL account value of £10,000 or did they change?

Thanks!!

@AlexAB Think of this way - you get stopped out when account funds = margin / 2 (invested funds / 2).

Balance = £10,000, you invest £10,000 -> if you lose £5,000 you get stopped out.

Balance = £10,000, you invest £1,000 -> lose £9,500 -> stop out.

There’s a ton of information & calculation examples here:

in your formula are you sure that at the denominator is “2*(invested funds/2)”?

Shouldn’t it be “1/2*(invested funds/2)”?